Private Equity - Uganda | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.26m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.41% resulting in a projected total amount of US$4.74m by 2025.
The average size per deal in the Private Equity market amounts to US$2.16m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 2.66 by 2025.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

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Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

The Private Equity market in Uganda has seen a minimal decline in growth, influenced by factors such as economic fluctuations, regulatory challenges, and limited access to capital. However, increased investor interest and emerging sectors present potential for future recovery.

Customer preferences: In Uganda, there is a notable shift towards sustainable and socially responsible investment, as both consumers and investors increasingly prioritize ethical practices and environmental impact. This trend is fueled by a youthful demographic that values transparency and accountability from businesses. Furthermore, the rise of digital commerce is reshaping consumer behavior, showcasing a growing preference for tech-driven solutions in retail and service delivery. These evolving lifestyle factors are influencing private equity investments, encouraging a focus on startups that champion innovation and sustainability.

Trends in the market: In Uganda, the Private Equity market is increasingly gravitating towards investments in startups that emphasize sustainability and technological innovation. This trend reflects a broader global movement towards ethical investing, where investors are prioritizing ventures that demonstrate social responsibility and environmental stewardship. Furthermore, the country's vibrant digital landscape is driving interest in tech-enabled businesses that cater to a tech-savvy youth demographic. As these dynamics evolve, stakeholders must adapt their strategies to capitalize on emerging opportunities, fostering a more resilient and responsible investment ecosystem.

Local special circumstances: In Uganda, the Private Equity market is shaped by a youthful population eager for innovation and a growing emphasis on sustainable practices. Unique cultural factors, such as a strong entrepreneurial spirit and community-based business models, foster a conducive environment for investment in social enterprises. Additionally, regulatory frameworks are evolving to support foreign direct investments, particularly in tech and green sectors. The country's strategic location within East Africa also enhances its appeal as a hub for regional expansion, promoting diversity in investment opportunities.

Underlying macroeconomic factors: The Private Equity market in Uganda is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Lower interest rates can facilitate access to capital, encouraging investment in startups and expanding enterprises, thus boosting private equity activity. Conversely, rising rates may deter investments due to increased borrowing costs. Additionally, global economic trends, such as commodity price fluctuations and trade dynamics, impact local investment sentiment. Uganda's national economic health, characterized by GDP growth and inflation rates, further shapes investor confidence, while government initiatives promoting a favorable business environment enhance the attractiveness of private equity opportunities.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.